We can interpret which psychological changes the investors have been through based on stock price fluctuations and trading volume. We can interpret what they are thinking now, or what mood they are in. This allows us to predict what they will probably do tomorrow or next month.
Trading today will then allow us to enter a stock before many other investors decide to buy, or to exit a stock before many other investors decide to sell.
Investtech’s analyses aim to interpret the fluctuations of investor psychology and market tends in order to predict the future development of stock prices. We do this using powerful computers, a large database of historical observations and the theory of technical analysis and behavioural finance.
Investtech's automatic analyses are based on advanced methods within pattern recognition, statistics and mathematics, developed since 1993. Emphasis is especially placed upon trends, support and resistance, stock price formations and volume.
For each stock and for each time perspective, a chart is produced together with its associated analysis. By using traditional theory for technical analysis, see Technical Analysis - For reduced risks and increased returns, the computers interpret what they find in the chart and then create both the analyses, texts and the correct recommendations, entirely automatically. This leaves no room for subjective interpretation, which is a common problem with traditional technical analysis, where the analysts draw the trend, support and resistance lines, and then interpret them.
The recommendations from the automatic analyses are given as Positive Candidate, Weak Positive Candidate, Wait/Watch, Weak Negative Candidate and Negative Candidate. Some places, however, Technical score is used. Risk is also indicated.
The analyses are produced and published as soon as possible after the closing of the exchange, and no later than before the exchange's opening the following day.
Investtech has three time perspectives for our analysis charts and recommendations.
Time Perspective | Chart | Investment Perspective |
Short term | 5 months | 1-6 weeks |
Medium term | 18 months | 1-6 months |
Long term | 6 years | 1-6 quarters |
Investtech also provides Candlestick charts covering 21 days. This, combined with short and medium term analysis charts, we consider best suited for investments with 0-10 days’ perspective.
Technical analysis is a method for analyzing tradable assets in order to predict future price movements. Technical analysis attempts to interpret market psychology by analysing the balance between supply and demand, i.e. the balance between buyers and sellers. Technical analysis is only interested in supply and demand, and only uses historical price and volume movements.
Technical analysis therefore only uses various price charts and indicators in order to analyse supply and demand. Technical analysis uses the same principles and analysis tools for all financial markets.
Price is a continuous struggle between buyers and sellers. When there is a surplus of buyers, i.e. rising demand, the price rises. When there is a surplus of sellers, i.e. rising supply, the price falls.
Technical analysis is about being on the right side of the market. If demand will rise, you want to buy early. If supply will rise, you want to sell early.
The foundation of technical analysis is the fact that price movements are not entirely random. Had they been, it would not have been possible to predict any price movements.
Price movements make patterns, i.e. trends and formations, that can be identified. And these patterns repeat themselves. Technical analysis attempts to identify trends and price formations in order to use the patterns for e.g. stock trading.
Identifying a rising trend allows you to find good buying opportunities when rising prices are expected in the future. And similarly to find good sales opportunities when falling prices are expected in the future.
Price movement patterns repeat themselves because investors’ psychological mechanisms do not change. Therefore a price formation, for example, indicates a specific price movement.
Fear of losses and greed for profit have always influenced people in various markets. Technical analysis attempts to determine which sentiment is currently valid for which market, ranging from fear to greed.
Investeringsaanbevelingen worden gedaan door Investtech.com AS ("Investtech"). Investtech garandeert geen volledigheid of juistheid van de analyses. Eventuele fouten in de aanbevelingen, koop- en verkoopsignalen en mogelijke negatieve gevolgen hiervan zijn geheel het risico van de belegger. Investtech neemt geen enkele verantwoordelijkheid voor verlies, direct of indirect, als gevolg van het gebruik van Investtechs analyses. Meer informatie omtrent Investtechs analyses kunt u vinden op disclaimer.
Investeringsaanbevelingen worden gedaan door Investtech.com AS ("Investtech"). Investtech garandeert geen volledigheid of juistheid van de analyses. Eventuele fouten in de aanbevelingen, koop- en verkoopsignalen en mogelijke negatieve gevolgen hiervan zijn geheel het risico van de belegger. Investtech neemt geen enkele verantwoordelijkheid voor verlies, direct of indirect, als gevolg van het gebruik van Investtechs analyses. Meer informatie omtrent Investtechs analyses kunt u vinden op disclaimer.